The City Council's Finance Committee discussed Tuesday a city budget with proposed revenue of $9.5 million, and anticipated expenditures of $9.481 million - conservative figures proposed by Treasurer Jennifer Humphrey (revenue) and Mayor Raye Turner (expenditures).

Then, discussion turned to salaries and personnel, particularly firefighters and police officers. Those budgets will highlight further discussion on the 2006 budget when the committee meets at 5:30 p.m. Thursday.

Alderman and Finance Committee chairman Cliff Kirchner said the operations and maintenance (expenditures) portion of the budget wasn't much different than the city's 2005 budget. The Arkansas Valley Alliance for Economic Development is earmarked to receive an additional $25,000, increasing the city's annual contribution to $80,000.

One other change would be Main Street Russellville receiving $10,000.

"It will all come down to personnel and salaries," Kirchner said.

Noting several times city employees have not received a raise in three years, aldermen suggested putting funds into reserve accounts for renovation of the city hall facilities, suggested by Alderman Rick Harrell and supported by Alderman Phil Carruth.

"We need to put some money into repairing or restoring this building," Harrell explained. "We need to get a vision of spreading out and using the entire building. If we start planning now and put some away, we'll have some put away to have a reserve fund for this building or for a new city hall building."

Council member Randal Crouch suggested putting a percentage of any additional funds more than the projected $9.5 million revenue into a reserve account.

Answering a question from Alderman Ronnie Tripp, Humphrey said there were $100,000 in new appropriations this year. Kirchner added "one thing that came back to bite us" was a $180,000 payment to LOPFI police and fire retirement funds.

Tripp added that reserve funds would be needed to purchase additional fire and police vehicles.

"We don't have the money to help all these programs," Alderman Robert Wiley said. "It's just not there."

Turner noted since Carruth's administration, the city is down 11 personnel. That includes five firefighters and police officers, and employees from Public Works and Recreation and Parks.

After Harrell asked department heads if they would have any turnback funds left, Public Works Director Morgan Barrett and Recreation and Parks Director Mack Hollis said they were transferring funds to stay in the black, mostly due to pains at the gas pumps. Fire Chief Dennis Miller said if he had any, it would be from personnel.

Kirchner said to get everybody on the same minimum salary plan schedules would cost $60,000-$75,000. To give city employees a 3 percent pay raise would cost an additional $162,000. That's $220,000 more in salary expenditures than in 2005.

Barrett pointed out Hollis' department has lost four employees and Barrett has lost three in the last two years.

Harrell said, after it was pointed out the salary plan projects 2 percent raises for firefighters on top of a 3 percent salary increase, that some firefighters have opportunities to obtain additional income through second jobs.

"What does their off-duty jobs have to do with their salaries?" Miller responded. "We work 56 hours a week. They (police officers) work 43 hours a week.

"You're saying that firefighters don't do as much or are not as important as other departments."

"No sir, that's not what I'm saying at all," Harrell responded.

"That sounds like what you are implying," Miller said. "People in other cities across the country wouldn't see it that way."

"I respect your departments, but this is why we are here expressing our views," Harrell added.

"If I was a fireman, I would see it the other way. But I'm sitting here, and I agree with him," Wiley noted.

"Last year, I was given the option to let people go to give them raises. I went against that because I thought it would hurt the city," Miller said, after it was noted Police Chief James Bacon's department gave personnel raises, but cut six positions in able to do so.

Barrett said when Carruth was mayor, the city had three building inspectors. Now, there is currently one.